One of the most important — and most overlooked — aspects of Islamic estate planning is this: debts come before inheritance.
Before a single dirham of your estate reaches your heirs, every debt you owe must be settled in full. This is not a recommendation. It is the Islamic legal order of priority after death.
The Islamic Order of Estate Distribution
After a Muslim dies, their estate is distributed in this order:
- Funeral expenses — the cost of washing, shrouding, and burial
- Debts — every outstanding financial obligation, personal or religious
- Wasiyyah (bequests) — up to one-third of the remaining estate
- Meerath (inheritance) — distributed according to Quranic shares
Inheritance only begins after debts are fully paid. If the estate is insufficient to cover the debts, heirs may voluntarily pay the remainder — but they are not legally obligated to.
Two Types of Debts After Death
Debts to People (Huquq al-'Ibad)
These are financial obligations to other humans — borrowed money, unpaid wages, deferred mahr, business debts. These are settled first from the estate. They cannot be forgiven by Allah on your behalf; only the creditor can forgive them.
Debts to Allah (Huquq Allah)
These include unpaid zakat, kaffarah for broken oaths or missed fasts, and an unfulfilled obligatory hajj. These are also settled from the estate. If the deceased left instructions in their wasiyyah, the heirs can fulfil these on their behalf.
What Happens to Debts Owed to the Deceased?
Money others owe you forms part of your estate. Your heirs have the right to collect it. However, if no record of the debt exists, your heirs may not even know to collect it — and the debtor may simply choose not to come forward.
This is why recording debts owed to you is just as important as recording debts you owe. Waseyya lets you record both directions and share the record with your beneficiaries so they know exactly what to collect.
The Danger of Undocumented Debts
The Prophet ﷺ said: "The believer's soul is suspended on account of his debt until it is settled on his behalf." (Tirmidhi)
Undocumented debts create three problems:
- For the deceased: The debt remains a burden on the soul until settled
- For the heirs: They don't know what to pay or collect
- For the creditor: They may never see their money returned
How to Prepare Your Family
The best gift you can give your family is clarity. Before you die:
- Record every debt you owe — to whom, how much, when
- Record every debt owed to you — who owes you, how much, when
- List your religious obligations (zakat, kaffarah, hajj)
- Designate someone you trust to access and execute your records
Waseyya was built specifically for this. Your debt records are encrypted, always updated, and automatically sent to your designated beneficiaries when your guardians confirm your passing. Your family will know exactly what to settle and what to collect — without having to guess.